Volvo plans to make cheap cars in China

Monaco-Ville: Executives reiterated Volvo plans to make cheap cars in China and the Swedish company that will market jointly with Geely Automobile Holdings Ltd.

Furthermore, Jacoby said, it is likely that the model would be a small SUV. Meanwhile, construction of factories in China are still awaiting government approval. The first factory in Chengdu and planned to start producing cars in the second half of 2013.

The Swedish automaker Volvo Car Corp is owned by Manufacturer China Zhejiang Geely Holding Group Co. is looking for new partners in North America. "In the medium term, five to six years, we need to find appropriate solutions in North America," said Volvo's chief executive Stefan Jacoby in an interview this week.

"If we own a factory building is not possible. We are seeking partners who can maximize our factory from the partners in North America."

Brand based in Gothenburg Sweden is looking for "couples". However, Jacoby Volvo declined to potential partners.

"The cooperation would be ideal if Volvo partner willing to cooperate in the development costs of small cars," Jacoby said in an interview to Automotive News Europe in Monaco.

Volvo considering building an assembly plant in North America that is independent of the value of the euro. Jacoby had said they should be partners in the United States or Mexico.

Zhejiang Geely bought Volvo from Ford Motor Co. in August 2010 of 1.8 billion euros.

Volvo has targeted sales nearly doubled to 800 thousand cars and sport utility vehicles in 2020 from the delivery of 449 255 cars in 2011.

Volvo plans to invest $ 11 billion in the next few years. Including, the construction of two cars and factory machinery factory in China. "Volvo is open to all parties including Fiat SpA as a partner," said Jacoby.

Turin-based auto makers, Italy (Fiat) is melalang traveled in the United States through the acquisition of Chrysler Group LLC, which is part of the strategy related to the Chief Executive Sergio Marchionne Fiat growth.

"Fiat definitely one of the alternatives," said Jacoby. "If you talk to Marchionne, please say to call me."

"Volvo suffered a loss in profits in the United States and Europe," added Jacoby Zhejiang Geely hired in 2010. Previously, Jacoby worked in the U.S. to Volkswagen AG.

small engines and electric vehicles will be shared between Volvo and Geely

Development of small engines and electric vehicles will also be shared between Volvo and Geely.

China car Geely plans PRODUCER disburse public investment of U.S. $ 11 billion for Volvo. "We want to Volvo and give power back to the brand," said Li Shufu, chairman of Geely Automobile Holdings.

To the German magazine Wirtschafts Woche, Shufu said that Geely will provide U.S. $ 11 billion to build new engine plant, increased research and development and technological improvement.

However, Volvo spokesman Per-Ake Froberg told Reuters that Volvo itself will provide funds through loans and other means.

Regardless of where the funds came from, the investment is intended to encourage the Volvo brand in China market aggressively, in which the Swedish brand has sold about 50,000 vehicles last year.

Geely aims to sell Volvo able to control 20 percent of the premium car market in China within three years with a target of 200,000 vehicles in 2014. This is part of an ambitious plan to double the sales of Volvo in the past 10 years.

In return, Geely will get a new premium brand in China that use Volvo technology and technical skills. In addition, both brands will combine their buying power to get better deals from suppliers.